GoldQuest Mining (GQC, TSX-V)
This could be an interesting week for GoldQuest as Chairman Bill Fisher stated to us in our interview with him earlier this month that initial drill results from Escandalosa were quite possible by the start of PDAC in Toronto May 6…GoldQuest will definitely be showing off some core at the show…a 43-101 resource estimate for the Toral zinc-lead-silver deposit in Spain is also due anytime now…new President and CEO Julio Espaillat officially starts March 1, so that increases the likelihood of an eventful month of March for GoldQuest on the news front…the stock continues to look very strong technically and buying pressure as indicated by the CMF is now increasing after a one-month decline…GQC dipped just below its rising 50-day moving average (SMA) last week as it did in early January just before a major move to the upside…in the case of GoldQuest, it seems the stock likes to occasionally do that…this is a terrific-looking chart…with a market cap of only $44 million, GQC has an immense amount of upside potential given the quality of projects and geological targets this company has in the DR…a 43-101 on the Toral deposit will be a boost as well if the number closely matches the historical estimate of 5 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag…GoldQuest was up a penny for the week at 43 cents and made a nice intra-day reversal late in the trading session Thursday when it rose from a low of 38 cents to close at 45 cents…GQC has all the ingredients to become a huge winner this year as the bull markets in Gold and the CDNX intensify…
Greencastle Resources (VGN, TSX-V)
Greencastle is beginning to firm up slightly with an improved chart and the realization that the fundamentals with this company are very strong…rising oil prices also help Greencastle’s monthly cash flow as it receives royalties from heavy crude production at Primate in Saskatchewan…Greencastle was up 1.5 cents last week to 23.5 cents…the stock is supported on the downside by a rising 200-day moving average (SMA) while the 100-day SMA at 26.5 cents will provide some resistance but it’s still rising…Greencastle tripled in value over a six-week period from late October to early December…since the beginning of January, though, the stock has struggled due mostly to impatient investors frustrated with the lack of news…there hasn’t been news from Greencastle since November 30…however, with approximately $6 million in working capital, three Gold properties and monthly cash flow from an oil royalty, it doesn’t take a rocket scientist to figure out that VGN is a bargain in the low 20’s…volume has been light on the move down which confirms there’s nothing to be concerned about here…Greencastle will shine again soon enough…the long-term chart remains very bullish with rising 200 and 300-day moving averages (SMA) that are in no danger of reversing…it’s also interesting to note that President and CEO Tony Roodenburg, a large shareholder in VGN, has refrained from selling any of his holdings in recent months despite the fact the stock price more than tripled in value on high volume…this is different from past runs in the stock and adds further credence to our view that we haven’t seen the highs in this cycle yet from Greencastle – it’s poised for what we believe could be a massive breakout sometime during the first half of this year…Pinetree Capital has also accumulated more shares in Greencastle, so there’s every reason to be very optimistic regarding this company’s prospects in the days, weeks and months to come…Greencastle is up 68% since we added it back in to the BMR model portfolio four months ago…
Adventure Gold (AGE, TSX-V)
John has been right on the money with his chart work on Adventure Gold recently…this stock is looking extremely bullish and jumped another dime last week to 69 cents on strong volume…some of the results from Granada released by Gold Bullion recently have positive implications for Adventure Gold and we’ll be going over that in more detail as part of a major article very soon…of course AGE is also waiting for results from one hole drilled completely on its property (eastern extension) and a few others that intersected that property at depth…there’s a lot more to Adventure Gold, however, than just Granada…a 2,500 metre drill program started at Pascalis-Colombiere (eastern part of Val d’Or mining camp) in December and is testing the former L.C. Beliveau Mine at depth (below 300 metres) as well as near-surface parallel Gold structures to the west…Pascalis-Colombiere is just 1.5 kilometres east of Richmont’s (RIC, TSX) operating Beaufor Gold Mine which has produced over 1 million ounces in its lifetime…it’s safe to assume Richmont will be watching developments at Pascalis-Colombiere with interest…Adventure Gold’s property has significant upside exploration potential…the geological setting is favorable for the identification of new high-grade Gold bearing veins and structures or bulk-style ore shoots…there are many untested areas and excellent potential at depth…L.C. Beliveau was a very profitable former producer…if AGE can prove up something significant through extensions to this deposit, we see a potential deal with Richmont which would be the natural choice to bring the mine back into production…we first mentioned Adventure Gold to our readers in an article September 29, just a couple of days following the company’s announcement that it had acquired land at Granada, when the stock was trading in the low 20′s…we officially added AGE to the BMR model portfolio at 34 cents October 28, so the gain since then is 103%…Adventure Gold has been around only since late 2007 and we are impressed by the company’s solid portfolio of properties (19 in six strategic areas in Quebec and Ontario)…also of immediate interest is AGE’s partnership with Lake Shore Gold (LSG, TSX) on the Meunier 144 Property where deep drilling is currently testing the down plunge extension of Gold zones located at the Timmins and Thunder Creek deposits…the current initial deep drill hole onto the Meunier JV property is continuing…when completed it’s estimated the hole will provide a deep cut on the projected target area at about a vertical depth of 2,600 metres…this will enable shallower wedge cuts to be considered if significant mineralization is found to be present in this area…the initial deep hole was collared on LSG’s Timmins mine property last August…if this deep hole succeeds, AGE could absolutely explode…
Sidon International (SD, TSX-V)
Sidon continues to trade in a tight range, strongly supported by its rising 200-day moving average (SMA) at 12 cents…the stock has gradually pulled back after a big day February 16 when it rose to 16.5 cents on over 7 million CDNX shares…Sidon was off a penny for the week, closing Friday at 13 cents…investors are anxiously waiting for drill results from Morogoro East where drilling started in early December…that’s not an unusual delay so we’re not concerned at this point…the stock has shown clear trading patterns since the spring of last year and has been quite volatile…however, the primary trend remains up and Sidon has consistently found support at or just above the 200-day SMA…BMR will be interviewing President and CEO Kamal Alawas as soon as he is able to confirm a time with us…he could be waiting for news prior to speaking with us and that’s perfectly understandable…the company reported zones of disseminated sulphides of pyrite and pyrrhotite as well as some chalcopyrite and arsenopyrite over intervals of 30 to 70 metres throughout all six holes it drilled at MEG…we caution that visuals are not always reliable but there’s reason to be optimistic that Sidon could be on to something…the company is also trying to develop a placer operation at Morogoro and has also acquired ground near Canaco’s (CAN, TSX-V) discovery…this company has come a long way since last March when we first introduced it to BMR readers at a nickel, and its new web site is just one more indication of how impressively Sidon has developed and matured…we see exciting possibilities for 2011…the company raised over $1 million through the exercise of options and warrants in November and December…
Seafield Resources (SFF, TSX-V)
Seafield has been clawing its way back after dropping to a low of 31 cents February 14 on panic selling when an unfavorable article came out on Colombian Country Manager Ian Park…that was an unfortunate attack and some nervous investors were unnecessarily hurt…those who have done their homework and know the underlying value of Seafield jumped in at the height of the fear February 14-15 and picked up some cheap stock…Seafield climbed a penny-and-a-half last week to close at 43.5 cents…for now there is some obvious technical resistance in the high 40’s near the declining 50-day moving average (SMA)…what excites us most about Seafield is its Dos Quebradas Property as well as the adjoining Santa Sofia and La Loma targets…drilling continues at Dos Quebradas while a second rig has been brought in to commence drilling at Santa Sofia…the geological case for Seafield’s Quinchia land package is compelling and we’re looking forward to initial results from Dos Quebradas…patient investors have an opportunity to do extremely well with this play given the geological merits of Quinchia…
